Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                

UNLIMITED

Choice Magazine

Finding the best current account

IN 2012 Santander launched its 123 Account to great fanfare. Throwing down the gauntlet to the traditional Big Four high street banks, the 123 Account offered interest of up to three per cent on balances up to £20,000, plus cashback of up to three per cent on bills paid by direct debit, and all for a monthly fee of just £2.

The account was a roaring success, attracting 250,000 new customers in its first year, and by January 2016 – when Santander raised the monthly fee to £5 – there were 3.6 million 123 account holders.

In November 2016 the bank halved the interest rate to 1.5 per cent, still reasonably competitive but, come May 2020, it began a series of cuts. First, interest was cut to one per cent with a £15 a month ‘cap’ on cashback, then in August 2020 interest was reduced to 0.6 per cent, and finally in April 2021 to just 0.3 per cent, while the monthly account fee was cut by a measly £1 to £4.

So, at its launch, the 123 Account paid interest of £600

You’re reading a preview, subscribe to read more.

More from Choice Magazine

Choice Magazine3 min read
Christmas Travel Car Checks
BRITAIN'S DRIVERS should carry out more regular checks on their vehicles, as our new research reveals that over half (53 per cent) of drivers feel anxious about unexpected costs for running a car, with those who delay regular checks at greater risk.
Choice Magazine2 min read
Pick Of The Paperbacks
by MA Kuzniar This reimagining of the beloved story of The Nutcracker moves the action to Nottingham at the turn of the 20th century, and tells how a young girl's soon to be buried dream to become a ballerina is realised thanks toamysterious toymaker
Choice Magazine1 min read
Quiz
Test your memory and knowledge with this batch of questions. The answers are over the page. 1 Which popular TV soap is set in a fictional place called Beckindale? 2 By what other name is Lindisfarne known? 3 Which TV cookery programme used to give a

Related Books & Audiobooks